Ex-WorldCom honcho Bernie Ebbers obsessed over puny cost overruns for things like paper clips and toilet paper while his firm began covering up a gargantuan $3 billion in losses in the largest corporate bankruptcy in U.S. history, it was revealed in court yesterday.

Former WorldCom Controller David Myers discussed a memo sent by then-CFO Scott Sullivan, demanding an explanation about why the company blew its administrative budget for supplies by $16,000, its salaries and compensation allotment by $170,000 and its advertising budget by $130,000.

The memo makes it clear that the memo was sent at the behest of Ebbers – who wanted answers to the roughly $300,000 in cost overruns.

Myers, who has responded coolly and smoothly during three days on the stand, paused for a while before saying, “Not that I’m aware of.”

Myers repeatedly admitted that it was he – at CFO Sullivan’s direction – who shifted billions of dollars off the operating expense ledgers to cover up white elephants, particularly unused network facilities – that were running up red ink.

He said both he and Sullivan knew the new accounting gimmicks to prop up WorldCom’s dwindling finances were wrong. “You never told Sullivan you wouldn’t do it?,” Weingarten asked.

“I did not,” Myers said.

Weingarten asked if Myers told Ebbers about the fraudulent accounting, or called the Securities and Exchange Commission’s confidential investigations hotline or the FBI.